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Americans Owe $1.75 Trillion In Student Loan Debt, And These 22 Screenshots Show Exactly Why People Call The System A Scam

It's May, which means a whole new round of graduates are turning their tassels and entering the workforce. This also means that their first student loan payments are around the corner, and 2024's numbers are overwhelming, to say the least. This year, Forbes reports $1.75 trillion in total private and federal student loan debt and an average of $28,950 owed per borrower in the US.

Closeup of President Joe Biden
Closeup of President Joe Biden
Joe Biden, wearing a suit and tie, speaks into a microphone on stage
Joe Biden, wearing a suit and tie, speaks into a microphone on stage

News / Via giphy.com

While President Joe Biden has rolled out several rounds of student loan forgiveness, an aid package for borrowers of all circumstances has yet to be approved. Meanwhile, college degrees are failing to hold the same weight as they used to, and salaries remain nearly stagnant while the cost of living rises.

A group of people at a protest, with a man in the front holding a "Cancel Student Debt" sign from NAACP. Other signs and NAACP T-shirts are visible in the crowd
Kent Nishimura / Los Angeles Times via Getty Images

Basically, it's hard out here, and student loans aren't helping. In fact, bloated interest rates are arguably making things worse.

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According to Nerd Wallet, 2024–2025 student borrowers are looking down the barrel at a 6.53% federal student loan interest rate, making the cost of seeking an education higher than it has been in 16 years.

This is why some call student loans "predatory" and a scam. And if you're not convinced, these 22 screenshots may change your mind:

1.After making a $156 payment, only $1.56 went to this person's principal, and the rest went to interest.

The image shows a payment summary with a total of $156.00, recent payment date of 10/23/23, posted date of 10/24/23, $1.56 applied to principal, and $154.44 interest
Reddit: u/anotherarmadillo / Via reddit.com

2.This person was just about to celebrate paying off all their student loans when four cents in interest accrued while their payment was processing.

A screenshot of a financial summary showing a current loan balance of $0.04. The outstanding principal is $0.04, accrued interest is $0.00, and the last payment received was $301.15 on October 25, 2023
Reddit: u/Kimi_no_Sei / Via reddit.com

3.This person couldn't even think about celebrating paying off their loans because it caused their credit score to drop nearly 80 points.

Credit score display showing a score of 664. Text reads: "Welcome back! On January 06, 2024, your score decreased by 78 points."
Reddit: u/TofuKweeen / Via reddit.com

4.This person had a question about their student loans and spent over 1 hour and 47 minutes on hold...

Phone call screen showing call duration of 1 hour, 47 minutes, and 20 seconds with options for mute, keypad, speaker, add call, FaceTime, and contacts
Reddit: u/hellohi3 / Via reddit.com

5....which is egregious, but nothing is compared to this person's nearly six-hour wait time.

Phone screen showing an active call with 1 (855) 337-6884, ongoing for 5 minutes and 42 seconds. Options displayed: mute, keypad, speaker, add call, FaceTime, contacts, and end call
Reddit: u/ecm208 / Via reddit.com

6.This person can't imagine getting ahead of their nearly $30,000 balance when only $15 out of their $272 monthly payments is going toward the principal.

Account overview indicates a total balance of $29,883.32. Most recent payment on Jan 20, 2022, totaled $272.71, with $15.14 going to principal and $257.57 to interest
Reddit: u/Care4Underwear / Via reddit.com

7.This person graduated from college over eight years ago, and after paying nearly $11,000 toward their loans, their principal is almost exactly where it started.

A balance overview showing an original loan amount of $14,000, total amount paid $10,842.36, and remaining balance $13,715.70
Reddit: u/naterzr2 / Via reddit.com

8.This person thought paying off their loans would finally open the door for them to afford a home — if it wasn't for their credit score dropping by result.

A credit report summary showing a score of 748 from June 9, 2019, with details on credit factors and changes, including account closures and decreased balances
Reddit: u/AnotherSadClown / Via reddit.com

9.This guy considered adding his wife as a co-signer on his loan with the hopes of lowering the interest rate...but it stayed exactly the same.

Congratulations message about a co-signer lowering loan rates. Summary of loan details included: 5-year fixed, $57,927 estimated lifetime savings, monthly payment $965.45
Reddit: u/BevoDDS / Via reddit.com

10.A credit card company "offered" this person student loans as a way to "celebrate [their] hard work."

Advertisement for student loans, stating: "We can't get you good grades, but we can reward you for them. Get a student loan that celebrates your hard work. Limitations apply." There's a "Get Started" button
Reddit: u/Galindoja1 / Via reddit.com

11.This person held on to an interest rate of 3.5% for 12 years, and then it suddenly shot up to 7.75% despite them never missing a payment. Now their monthly payments are three times as much.

A table displays payment information with columns for Date, Description, Principal, Interest (highlighted in red), Fees, and Total
Reddit: u/JasErnest218 / Via reddit.com

12.This person is disgusted by how their student loan servicer automatically gave their highest balance a larger interest rate.

Online bill payment screen showing several balances with dates, amounts, due amount, interest rates, and a total payment due of $147.15
Reddit: u/keedanlan / Via reddit.com

13.This person paid off their loans! It only took them 20 years. You know, like a quarter of their entire life.

Screenshot showing a message, "Oh hey! It only took 20 years, but my student loans are at zero as of today," and loan details with a 0% interest rate, $0 principal balance, and $0 outstanding interest
Reddit: esxrightnow / Via reddit.com

14.This person's student loan provider — to which they already owe over $100,000 — sent them a text with cute little hearts, offering them another loan.

Email inbox showing spam messages from Cheap Joe's Art Stuff, Navient, and Air Plant Supply Co
Reddit: u/ColloquiaIism / Via reddit.com

15.This person tried to charge a $44 dinner to their credit card, but their credit score went down because their student loan balance + the dinner made their credit usage too high.

Credit score decreased by 20 points to 717 on Oct 30. USAA SVG BK balance increased by $44. One change found in Transunion credit report
Reddit: u/Jaketatoes / Via reddit.com

16.After making 40 student loan payments, this person's balance went up $6.

FedLoan Servicing report dated Feb 29, 2020. Balance: $2,006, no payments made. Loan opened Aug 23, 2014, for 240 months. Payment history from 2016-2020 shows on-time payments
Reddit: Deleted / Via reddit.com

17.This person's interest goes up by about €370, despite their monthly payments being €309.

Summary of an image showing financial repayment details including a salary repayment of £309.00, direct repayment of £0.00, and interest added of £370.90
Reddit: u/TheCorpseOfMarx / Via reddit.com

18.This person paid off their $14,547 student loan bill, and it's all thanks to the settlement money they received following a car accident. "I am sobbing with relief and gratitude," they said.

Notice stating that a private student loan (Account 9973) is paid off. Minimum payment due is $0.00. Last payment date was Feb 08, 2021. Account balance is $0.00
Reddit: u/cmdR_CHRIS / Via reddit.com

19.This is one semester's tuition at some poor soul's university:

Statement with amount due $31,756.33 for activity through August 9, 2022
Reddit: u/throwaway262729399 / Via reddit.com

20.Oh look, another credit score drop — the price of being student loan-free.

Credit score update: Your FICO score changed from 834 to 817. Company: Student Loan Corp. Status: Paid Loan with $0 balance
Reddit: u/IpreferFiction2 / Via reddit.com

21.This loan servicer sent an ominous "We've been trying to reach you" email to someone they want to continue borrowing from them.

Notification from Discover Student Loans about covering college costs, including a clickable link. Mentions "Account Center" and the last four digits of an account number
Reddit: u/inkpenwitch / Via reddit.com

22.And finally, this person paid nearly $12,000 toward interest alone in a single year. Yay!

Your 2023 tax document is now available. Interest paid on eligible Sallie Mae student loans in 2023 was $11,982.24
Reddit: u/geo_dude89 / Via reddit.com

What are your thoughts? Let us know in the comments.